Nearly eight months after President Trump's prediction that U.S. companies would rapidly rebuild Venezuela's oil industry, no new deals have been finalized with American firms. This delay has been attributed largely to the U.S. Department of Energy, according to a dozen oil industry professionals, senior U.S. officials, and Venezuela insiders. The rising price of oil due to the Iran war highlights the urgency of finalizing these deals in Venezuela, which possesses the world's largest estimated petroleum reserves. Senior U.S. officials have expressed frustration over the lack of progress, stating, "We have no new concessions. No new deals. It is absolutely a problem." The Energy Department, however, defends its actions, calling the criticisms "misleading and unfair."
The slow pace is partly due to divisions within the Trump administration and the oil industry itself. Major global firms like Exxon and ConocoPhillips have shown reluctance to re-enter Venezuela due to uncertainty, while smaller, more risk-tolerant independent firms, or "wildcatters," are eager. Former top adviser Mauricio Claver-Carone accused the Energy Department of favoring major oil companies over wildcatters, arguing that American wildcatters faced "onerous conditions and a competitive disadvantage." The Energy Department asserts it has advocated for legitimate U.S. wildcatters and worked to improve Venezuela's hydrocarbon law to increase U.S. firm access.
Despite the delays, some progress is being made. State Department officials have urged Venezuela's acting president, Delcy Rodriguez, to sign more contracts with wildcatters, with some deals potentially finalizing by month's end. Venezuela's oil minister Paula Henao also signed contracts with Hunt Oil Company and SLB this week in Houston, marking some of the first major deals in close to two decades. Venezuela's crude output is projected to reach 1.245 million barrels per day by the end of August, with exports up 19.7% this year. Currently, about 500,000 barrels per day of Venezuela's oil output is going to U.S. refineries, which are specifically built for its heavy, sour crude. The U.S. is also sending more than 100,000 barrels per day of naphtha to Venezuela for blending with heavier crude.
